July 10, 2024
New Delhi, India
Emcure Pharmaceuticals Debut
Emcure Pharmaceuticals shares made a strong debut on the stock market today, opening at ₹1,325.05 per share on the NSE, which is 31.45% higher than the issue price of ₹1,008.
Market Expectations and Grey Market Premium
The robust listing aligns with market expectations, which anticipated the shares to open between ₹1,370 and ₹1,390. Prior to the listing, the grey market premium (GMP) for Emcure Pharmaceuticals IPO was +300, indicating strong investor interest and a willingness to pay a premium over the issue price.
IPO Subscription Details
Emcure Pharmaceuticals IPO saw overwhelming demand across all investor categories. The IPO was subscribed 67.87 times overall, with the retail investor portion subscribed 7.21 times, the non-institutional investor portion subscribed 48.32 times, and the qualified institutional buyer (QIB) portion subscribed a remarkable 195.83 times.
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Company Background
Emcure Pharmaceuticals, based in Pune, focuses on research, development, production, and marketing of pharmaceutical products globally across various therapeutic areas. The IPO price range was set between ₹960 and ₹1,008, and the subscription period ended on July 5.
IPO Details and Use of Proceeds
The IPO consisted of an offer for sale (OFS) by existing promoters and shareholders amounting to ₹1,151 crore and a fresh issue of ₹800 crore. At the upper end of the price range, the total issue size was valued at ₹1,952 crore.
Prominent promoters and shareholders participating in the OFS included Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta. Other selling shareholders included BC Investments IV, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta.
The company plans to use the net proceeds for general corporate purposes and to repay or prepay certain outstanding borrowings.
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Lead Managers and Registrars
Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited served as the book-running lead managers for the IPO, with Link Intime India Private Ltd. acting as the registrar.
Conclusion
The successful listing of Emcure Pharmaceuticals shares at a significant premium reflects strong investor confidence and robust demand for the company’s IPO. The company’s strategic focus on pharmaceutical research and development positions it well for future growth and market expansion.
Disclaimer:
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